THE NEW DEAL HISTORY,  OR  NOW?  

NEW  DEAL  a  Raw  Deal?   PROS   •  New  Deal  laws  ended   some  Depression   crises   •  Kept  democracy  in   tact   •  Gov’t  took  care  of  its   ciFzens   •  InsFlled  confidence    

CONS   •  Federal  government   expanded,  more   powerful   •  Intruding   •  Threat  to  civil   liberFes  &  privacy   •  Chips  away  at  laissez   faire   •  Deficit  spending   creaFng  nat’l  debt  

LEGACY OF THE NEW DEAL 1. DEMOCRATS WERE KING Analysts agree the New Deal produced a new political coalition that sustained the Democratic Party as the majority party in national politics for more than a generation after its own end.

LEGACY Of THE NEW DEAL 2. POWER TO THE PRESIDENT During Roosevelt's 12 years in office, there was a dramatic increase in the power of the federal government as a whole. Roosevelt also established the presidency as the prominent center of authority within the federal government

LEGACY OF THE NEW DEAL 3.  FDR’s NEW DEAL Helped Shape LBJ’s GREAT SOCIETY The Roosevelt Administration generated a set of political idea— known as New Deal liberalism — that remained a source of inspiration and controversy for decades and that helped shape the next great experiment in liberal reform, the Great Society of the 1960s.

The New New Deal? Some People Think that Barack Obama, with his passage of Health Care Reform, government intervention in the economic crisis and his bold social agenda, is intent on carrying the torch of change that was once held by FDR, JFK and LBJ …

Or NOT? … But other people think that after the midterm trouncing of the Democrats by the Republicans last November, Obama is going to follow the Reagan playbook and become more of a political centrist

LEGACY OF THE NEW DEAL 4.  SPEND NOW, PAY LATER Part of the Problem of Part of the Solution? Based on a force of necessity, and a desire to move away from laissez-faire economics and an attempt to stimulate the economy, FDR started spending more money as a nation than we were making. This concept is known as DEFICIT SPENDING - or the great national credit card – and American has never looked back.

LEGACY OF THE NEW DEAL 5. THE NEW DEAL IS STILL HERE– Some of FDR’s Reform programs are still here, we expect and feel that we are entitled to them, and we are still paying for them. A) Social Security – A national pension and unemployment system that has evolved into a series of assistance programs and government benefits

Some Key Dates in the Development of U.S. Social Security Programs Programs 1935 Social Security Old-Age Insurance; Unemployment Insurance; and Public Assistance programs for needy aged 1937 Public Housing 1939 Social Security Old-Age and Survivors Insurance 1946 National School Lunch Program 1950 Aid to the Permanently and Totally Disabled (replaced by the SSI program in 1972) 1956 Social Security Disability Insurance 1960 Medical Assistance for the Aged (replaced by Medicaid in 1965) 1964 Food Stamp Program 1965 Medicare and Medicaid Programs 1966 School Breakfast Program 1975 Earned Income Tax Credit 1981 Low-Income Home Energy Assistance 1996 Temporary Assistance for Needy Families assistance programs for the aged, blind, and disabled

LEGACY OF THE NEW DEAL – THE NEW DEAL IS STILL HERE B) Federal Deposit Insurance Corporation (FDIC) – A national banking insurance policy designed to end a “run on the banks” and temper public fear that their money wouldn’t be there when needed

FDIC  HISTORIC  LIMITS   Originally  $5,000  (1935),  then  $10,000  (1950),  up  to  $15,000   (1966)  and  $20,000  (1969)  and  $40,000  (1974)   In  1980,  the  FDIC  Insurance  went  to  $100,000  per  account,  and   stayed  there  unGl  the  financial  crisis  of  2008,  where  it  was   raised  to  the  current  amount  of  $250,000  

B)  FDIC  –     C)  SEC  -­‐  

LEGACY OF THE NEW DEAL – THE NEW DEAL IS STILL HERE C) The Security and Exchange Commission (SEC) – established by the established by the United States Congress as an independent, quasi-judical regulatory agency to help regulate the stock market and prevent corporate abuses relating to the buying and selling of securities. The SEC was given the power to license and regulate A)  Stock Exchanges B)  The Companies whose securities traded on them C)  The Brokers and dealers who conducted the trading

But  the  problem  is,  no  system  is  perfect…  

LEGACY OF THE NEW DEAL 6. POVERTY HAS NOT GONE AWAY– If one of FDR’s goals was to level the playing field – if not as strong as Huey Long’s “share the wealth”, at least to help decrease the disparity of wealth that had become rampant in the 1920’s, he did not succeed

Poverty Stats - NY State - 2007 Median Household Income - $50,233 Males - $ 40,798 - Females - $ 31,223 – (2004 levels)

Household Income Less than $10,00 - 11.5% $10,000 - $14,999 - 6.4% $15,000-$20,999 - 11.7% $35,000-$40,999 - 14.8%

Poverty Status Individual - 14.6% Below 17 - 19.6% 18 and over - 12.8% 65 and older - 11.3%

STATS In 2007 – 12.5 % Americans lived in poverty. That’s 37.3 million Americans. 8.2 % of whites were in poverty. 24.5 % African Americans were in poverty. 21.5 % Hispanics were in poverty. 10.2 % Asians were in poverty.

In 2003 - 6.3% were unemployed. Jan ‘08 - 7.6% Median earnings of roughly $ 44, 000 for a family of four have not kept up with inflation.

2008 HHS Poverty Guidelines Persons in Family or Household 48 States and D.C. 1 $10,400 2 14,000 3 17,600 4 21,200 5 24,800 6 28,400 7 32,000 8 35,600

Alaska $13,000 17,500 22,000 26,500 31,000 35,500 40,000 44,500

Hawaii $11,960 16,100 20,240 24,380 28,520 32,660 36,800 40,940

For each additional person, add: 3,600 4,500 4,140 SOURCE: Federal Register, Vol. 73, No. 15, January 23, 2008, pp. 3971– 3972